Coffee drinkers may have noticed that their morning cup has become slightly more costly in recent months. That’s due to rising food and energy costs driving coffee prices higher, squeezing roaster margins as much as ever before.

Coffee price fluctuations are caused by many different factors. A drought in Brazil has reduced supply while increasing demand, driving prices upwards. Furthermore, inflationary pressures also impact coffee drinkers’ prices and contributes to rising coffee costs.

But it’s not only bean prices that have people anxious: rising energy and food costs have put pressure on business operators, resulting in increased production and transportation costs for roasters – leading them to pass along those higher costs to consumers through higher coffee prices.

Understanding that farmers who grow the coffee you drink are just the first link in an elaborate supply chain is critical. Each step in that chain erodes money from its value, thus decreasing what each producer gets per sale – as such, specialty coffee producers tend to make less per pound sold than their counterparts in mass-market production.

As there are ways to support the growth of the coffee industry, and many organizations are working hard to assist farmers. One such organization is Oromia Coffee Union. This non-profit specializes in supporting coffee farmers by investing their fair trade premium in local social projects as well as offering loans and crop insurance policies for members.

Another essential way of supporting coffee production is through sustainable and resilient farming practices, such as conserving land and water resources. Such efforts help ensure that coffee will continue to be grown both where it thrives well as well as in areas where its competitive edge has diminished.

As the coffee industry expands, it is crucial that roasters support farmers by building long-term relationships with suppliers. Forward contracting allows roasters to secure stocks of coffee for future purchases – though smaller roasters should note this may be risky when coffee prices fluctuate rapidly.

Roasters can ensure the sustainability of the coffee industry by adopting transparent and accountable trading practices, such as new models of governance that resist buyer hegemony, revamping antitrust policies to protect smallholder farmers, and supporting producer institutions.

As the global coffee market evolves, it is imperative that we collaborate on learning from one another – both to improve our products and to support communities who depend on this precious commodity. If you would like more information on ethical purchasing and selling practices of coffee products, visit the International Coffee Organization website for standards and regulations information.